Anna 
In the European session on Monday, the Pound Sterling (GBP) experiences a significant decline, particularly against the US Dollar (USD). This downward movement is driven by the impact of resilient United States Nonfarm Payrolls (NFP) data released on Friday, which has diminished expectations of a rate cut from the Federal Reserve (Fed) at the upcoming March monetary policy meeting. The robust job creation figures in the US, coupled with unexpected wage growth, signal persistent inflation pressures.
Adding to the challenges, the scenario for Bank of England (BoE) policymakers becomes increasingly complex due to mounting concerns about a technical recession in the United Kingdom’s economy. According to revised Q3 Gross Domestic Product (GDP) estimates from the UK Office for National Statistics (ONS), the economy contracted by 0.1%. This contraction raises fears of an economic downturn, with higher interest rates exacerbating the cost-of-living crisis and compelling businesses to operate with reduced capacity.
The Pound Sterling (GBP) finds itself under bearish momentum amid this gloomy economic outlook, with uncertainties surrounding both domestic and international factors. As the Pound faces headwinds, traders and investors are closely monitoring developments that could further impact the currency’s performance in the coming sessions.
